Credit Contracts Legislation Amendment Act 2019

Version as at 1 December 2021

Coat of Arms of New Zealand

Credit Contracts Legislation Amendment Act 2019

Public Act
2019 No 81
Date of assent
19 December 2019
see section 2

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Ministry of Business, Innovation, and Employment.


3Amendments to Credit Contracts and Consumer Finance Act 2003
4Section 3 amended (Purposes)
5Section 4 amended (Overview)
6Section 5 amended (Interpretation)
7New section 8C inserted (Status of examples)
8CStatus of examples
8Section 9A amended (Outline of Part)
9Section 9B amended (Interpretation)
10Section 9C amended (Lender responsibility principles)
11New section 9CA inserted (Records about inquiries made)
9CARecords about inquiries made
12Section 9F amended (Content of Responsible Lending Code)
13Section 9J amended (Publication of standard form contract terms)
14Section 11 amended (Meaning of consumer credit contract)
15New section 16A inserted (Mobile trader credit sales treated as consumer credit contract)
16AMobile trader credit sales treated as consumer credit contract
16Section 22 amended (Disclosure of agreed changes)
17Section 23 amended (Disclosure of changes following exercise of power)
18Section 26 amended (Disclosure of changes to guarantors)
19Section 26A amended (Disclosure of transfer of rights of creditor under consumer credit contract)
20New section 26B inserted (Disclosure about dispute resolution schemes and financial mentoring services: hardship applications, arrears, credit declined, and complaints)
26BDisclosure about dispute resolution schemes and financial mentoring services: hardship applications, arrears, credit declined, and complaints
21Section 29 amended (Right of cancellation does not apply in certain situations)
22Section 32 amended (Disclosure standards)
23Section 35 amended (How disclosure is made)
24New section 41A inserted (Records and reviews about how fees calculated)
41ARecords and reviews about how fees calculated
25New subpart 6A of Part 2 inserted
45APurpose of this subpart
45BOutline of this subpart
45CMeaning of high-cost consumer credit contract
45DPower to increase interest rate that defines high-cost consumer credit contract
45ECosts of borrowing must not exceed loan advance
45FCertain high-cost consumer credit contracts with other creditors prohibited
45GHigh-cost consumer credit contracts with certain repeat debtors prohibited
45HRate cap
45ICompound interest prohibited
45JDefault fees
45KProhibition on avoidance
45LReview of subpart
26Section 57A amended (Obligations of creditor in relation to application)
27New subpart 9 of Part 2 inserted
59BDuty of directors and senior managers of creditors
28Section 83J amended (Effect of debtor’s complaint or application on grounds of unforeseen hardship on creditor’s rights to enforce credit contract)
29Section 83ZH replaced (Extinguishment of creditor’s security interest and subordinate security interests on sale)
83ZHExtinguishment of creditor’s security interest and subordinate security interests on sale
30Section 88 amended (Creditors, creditors’ agents, lessors, transferees, and buy-back promoters liable for statutory damages)
31Section 89 amended (Amount of statutory damages)
32Section 92 amended (Guidelines for reducing statutory damages)
33Section 93 amended (Court’s general power to make orders)
34Section 94 amended (Court orders)
35New sections 95A and 95B inserted
95ACourt may reduce effect of failure to make disclosure
95BGuidelines for reducing effect of failure to make disclosure
36Section 96 amended (Injunctions)
37New sections 98A and 98B and cross-heading inserted
98ACompliance orders
98BOrder to disclose information or publish advertisement
38Section 100 amended (Enforcement of guarantee prohibited)
39Section 102A amended (Infringement offences)
40Section 103 amended (Other offences)
41Section 106 amended (Reasonable mistake defence)
42Section 107 amended (Relevance of compliance programme)
43New subpart 5A of Part 4 inserted
107APecuniary penalties
107BProceedings for pecuniary penalties
107CRelationship between pecuniary penalties and criminal liability
107DRestriction on indemnities
107ERestriction on insurance
44Section 108 amended (Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters)
45Section 111 amended (Role and functions of Commission under this Act)
46Section 113 amended (Application of Commerce Act 1986)
47New section 116AAA inserted (Requirement for annual return)
116AAARequirement for annual return
48New subpart 8 of Part 4 inserted
116ADirectors and senior managers may also be liable for statutory damages or compensation
49Section 124 amended (Guidelines for reopening credit contracts, consumer leases, and buy-back transactions)
50New Part 5A inserted
131AInterpretation for this Part
131BWhen person needs to be certified
131CExemptions from need for certification
131DProhibitions on holding out that person is certified
131ECommission may issue certification
131FApplication for certification
131GWhen certification must be issued
131HProcedural requirements
131INotice of decision
131JCommission must send certification details to Registrar
131KConditions of certification
131LWhen Commission may impose conditions
131MCertified person may apply for variation of conditions
131NProcedure for variation of conditions
131ODuration of certification
131PWhen Commission may suspend or cancel certification
131QProcedural requirements on suspension or cancellation of certification
131RDuty to notify changes
131SAppeals against certification decisions
131TFees, charges, and costs in connection with this subpart
51New section 132A inserted (Disclosure about debt collection)
132ADisclosure about debt collection
52New sections 137A to 137C and cross-heading inserted
137AClass declarations about credit contracts and consumer credit contracts
137BDeclarations about particular arrangements or facilities
137CGeneral provisions about all declarations
53Section 138 amended (Regulations)
54Schedule 1AA amended
55Schedule 1 amended
56Amendments to Fair Trading Act 1986
57Section 36B amended (Meaning of layby sale agreement)
58Section 36C amended (Disclosure requirements relating to layby sale agreement)
59Amendments to Financial Service Providers (Registration and Dispute Resolution) Act 2008
60Section 4 amended (Interpretation)
61Section 5 amended (Meaning of financial service)
62Section 13 amended (Qualifications for registration as financial service provider)
63Section 18 amended (Deregistration of financial service provider)
64New section 23 and cross-heading inserted
23Information-sharing provisions between Registrar and Commission
65Section 27 amended (Contents of register)
66New section 67A inserted (Duty to communicate information about mobile traders)
67ADuty to communicate information about mobile traders
67Schedule 1AA amended
68Amendment to Financial Service Providers (Registration) Regulations 2010
69Amendments to Credit Contracts and Consumer Finance Regulations 2004

The Parliament of New Zealand enacts as follows: